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Latest news on Artificial Intelligence (AI) in the cryptocurrency market

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AI Expert Warns of Potential Human Extinction Risk

According to PANews, Geoffrey Hinton, a Nobel Prize-winning physicist known as the 'Godfather of AI,' has issued a stark warning about the potential risks posed by artificial intelligence. Hinton estimates a 10% to 20% chance that AI could lead to human extinction within the next 30 years. He expressed concerns over the rapid advancement of AI technology, which he believes is progressing faster than anticipated, potentially leading to AI systems that surpass human intelligence and become uncontrollable.Hinton has called for increased government regulation of AI technology, arguing that relying solely on corporate profit motives is insufficient to ensure the safe development of AI. He highlighted that many experts in the AI field predict the emergence of AI systems more intelligent than humans within the next two decades, posing a significant threat to humanity.In contrast, Yann LeCun, another prominent figure in AI and the Chief Scientist at Meta, holds a different perspective. LeCun believes that AI could potentially save humanity from extinction, offering a more optimistic view of the technology's future impact.
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OpenAI Considers Restructuring Amid Legal Challenges

According to Cointelegraph, OpenAI is contemplating a corporate restructuring to better align its nonprofit and for-profit divisions. The artificial intelligence developer, known for creating ChatGPT, has faced significant criticism and legal challenges since its 2019 decision to establish a for-profit business unit alongside its original nonprofit foundation.OpenAI is exploring the possibility of transforming its for-profit division into a Delaware Public Benefit Corporation (PBC), a legal framework that mandates balancing shareholder, stakeholder, and public benefit interests. This potential restructuring, detailed in a December 27 blog post, aims to facilitate capital raising under conventional terms similar to other companies in the sector. Additionally, it would allow the nonprofit arm to recruit a leadership team and staff dedicated to charitable initiatives in areas such as healthcare, education, and science.The controversy surrounding OpenAI's for-profit venture has been further fueled by a lawsuit filed by Tesla CEO Elon Musk, a co-founder of OpenAI. In 2024, Musk sued the AI developer's leadership, including CEO Sam Altman, alleging violations of the terms related to Musk's foundational contributions to the organization. The lawsuit claims that Altman manipulated Musk into co-founding what Musk describes as a "spurious nonprofit venture." OpenAI has defended its decision to create a for-profit entity, stating in a March blog post that it was essential for securing the capital needed to support the computational demands of AI models.Musk has since launched his own AI firm, xAI, which he claims is being undermined by OpenAI's anti-competitive practices. Meanwhile, David Sacks, the presumptive "White House AI and Crypto Czar" under President-elect Donald Trump, has criticized OpenAI's shift from nonprofit philanthropy to a for-profit entity. Sacks, who has close ties to Musk, expressed his disapproval in October, describing OpenAI's transformation as a move from "nonprofit philanthropy to piranha, for-profit company."Looking ahead, the role of AI agents, including those developed using ChatGPT models, is expected to expand significantly within decentralized communities by 2025. J.D. Seraphine, CEO of Web3 AI developer Raiinmaker, shared this outlook with Cointelegraph in December. Asset manager VanEck anticipates that over 1 million AI agents will be integrated into blockchain networks by the end of 2025.
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AI Agent Frameworks Move Towards Blockchain Integration

According to PANews, there is a growing call for AI framework projects to integrate with blockchain technology. Despite past market fluctuations, the current era of AI Agents requires reliable autonomous decision-making and collaboration, which can be enhanced through blockchain integration. Currently, frameworks like ELIZA, ARC, and Swarms are in the conceptual phase, where their potential cannot be fully validated or quantified. These frameworks need to establish practical applications to gain market acceptance. Whether optimizing single AI Agent performance or facilitating multi-agent interactions, these frameworks must develop traceable logic and rules for AGI model API calls. Data remains off-chain, making inference processes difficult to verify, execution processes opaque, and results uncertain. In the short term, Trusted Execution Environments (TEE) offer a low-cost, feasible off-chain solution to accelerate AGI applications in AI Agent decision-making. However, a long-term solution requires on-chain consensus to enhance reliability. For instance, ELIZA aims to build an AI Agent autonomous private key management system using Phala Network's TEE secure remote authentication. This ensures that AI-Pool execution code remains unaltered before signing with private keys, marking a preliminary step in applying TEE to AI Agents. By embedding complex execution logic into Agent Contracts and involving Phala chain Validators in verification, a blockchain consensus-based TEE execution framework can be established. This would create a positive cycle where AI Agent demand drives TEE usage, and TEE enhances blockchain capabilities. While TEE can ensure private key invisibility, the rules for key invocation, risk control, and emergency response need decentralized consensus for real-time verification. In the short term, open-source code libraries can provide transparency, but long-term solutions require decentralized validation. Thus, blockchain integration can expedite AI Agent frameworks' transition to practical applications and offer new opportunities for crypto infrastructure. The direction is clear: identifying and supporting the earliest blockchain-integrated AI Agent frameworks and the foundational chains supporting them is key to capitalizing on this emerging trend.
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Italy Fines OpenAI $15.7 Million Over Data Privacy Violations

According to Cointelegraph, Italy's data protection authority, the Italian Data Protection Authority (IDPA), has imposed a fine of $15.7 million (15 million euros) on OpenAI. The penalty follows an investigation into the company's data collection practices related to its ChatGPT model. The IDPA's findings revealed that OpenAI failed to notify the agency about a data breach that occurred in March 2023. Additionally, the company was found to have processed users' personal data without establishing a legal basis, thereby breaching transparency principles and information obligations.The IDPA also highlighted the absence of adequate age verification mechanisms, which could potentially expose minors under 13 to inappropriate content. As a corrective measure, OpenAI has been instructed to initiate a six-month public awareness campaign across various media platforms. This campaign aims to enhance public understanding of ChatGPT's data collection processes and inform users about their rights under the European Union's General Data Protection Regulation (GDPR), including opposition, rectification, and cancellation rights.The IDPA noted that OpenAI's cooperative approach during the investigation led to a reduction in the fine's amount. The investigation, which began in March 2023, concluded after considering the European Data Protection Board's opinion on AI model data usage. During this period, OpenAI relocated its European headquarters to Ireland, making the Irish Data Protection Authority the lead supervisory body for ongoing investigations.Italy had previously become the first Western nation to temporarily ban ChatGPT over privacy concerns, prompting the IDPA to investigate potential data privacy violations. The ban was lifted after OpenAI agreed to implement several transparency measures. Despite the fine and ongoing scrutiny, OpenAI has not yet commented on the situation.
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